Business Taxes Law Guide – Revision 2015

Sales and Use Tax Annotations

570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY

Annotation 570.0116

(a) IN GENERAL

570.0116Exemption from Use Tax—Section 6401. Gross receipts are required to be included in the measure of sales tax unless the gross receipts are exempt under the Sales and Use Tax Law. If a seller is properly liable for sales tax, the purchaser is exempt from use tax. The failure of the seller to pay the tax to the State does not invalidate the use tax exemption under this section nor does it result in the purchaser being responsible for use tax.

The presumption of taxability under section 6091 is not applicable to a purchaser asserting an exemption pursuant to section 6401 that the sale was subject to sales tax. 12/2/91.